Statistics Canada’s offices at Tunny’s Pasture in Ottawa are shown on March 8, 2019. The Canadian economy grew for a third consecutive month in May, rising 0.2 per cent overall as 13 of 20 sectors advanced. Statistics Canada says the increase in real gross domestic product was led by a rebound in manufacturing, after a decline in April. THE CANADIAN PRESS/Justin Tang

Canada’s GDP grows 0.2 per cent in May as manufacturing rebounds: Statcan

Statistics Canada’s GDP report said wholesale trade fell 1.4 per cent in May

The Canadian economy grew for a third consecutive month in May, rising 0.2 per cent overall as 13 of 20 sectors advanced, Statistics Canada reported Wednesday.

The growth in gross domestic product was above analyst estimates of 0.1 per cent growth and showed renewed strength in manufacturing, which rebounded from an April dip, as well as continued growth in construction.

Douglas Porter, chief economist at BMO Capital Markets, said May’s growth was slightly more positive than the month’s numbers indicate because Statistics Canada also revised April’s number to 0.33 per cent growth from 0.26 per cent.

“The above-expected GDP gain is all the more impressive since it overcame declines in each of wholesale, retail, utilities, and oil and gas output (oilsands production pulled back six per cent from April),” Porter wrote in a commentary.

He said the slight upward revision to April and the “sturdy” details in May put a “relatively healthier glow on the economy’s spring-time performance.”

TD senior economist Brian DePratto said the May report underscores the strength of a recovery from a weak start to 2019, but noted that manufacturing and real estate were “coming back to life after earlier setbacks.”

“That said, a recovery is a recovery, and with upward revisions to the April report, we upgrade our second quarter GDP growth tracking again, to 3.0 per cent annualized,” DePratto wrote.

Porter agreed that growth for the second quarter will be close to three per cent.

“That compares with (BMO’s) call of 2.5 per cent, and the (Bank of Canada’s) latest official estimate of 2.3 per cent for the quarter,” Porter wrote.

Statistics Canada’s GDP report said wholesale trade fell 1.4 per cent in May, after four months of growth, with all subsectors contracting except building material and supplies (up 0.4 per cent).

Retail trade contracted 0.4 in May, the first month-over-month decline since last summer, while the mining, quarrying and oil-gas extraction sector contracted 0.8 per cent after a 5.5 per cent increase in April.

Oil and gas extraction decreased 2.5 per cent in May, after two months of growth. Excluding oilsands, crude petroleum and natural gas extraction rose 1.1 per cent.

Mining, excluding oil and gas extraction, was up for a third consecutive month with a gain of 2.7 per cent.

Metal ore mining was up 2.6 per cent, non-metallic mining was up 2.1 per cent, led by an export-driven gain in potash (up 3.0 per cent). Coal mining was up 8.3 per cent on higher exports of metallurgical coal, Statistics Canada said.

READ MORE: Statistics Canada says real GDP grew 0.3% in April, tops expectations

The Canadian Press


Like us on Facebook and follow us on Twitter.

Just Posted

Would you support a rainbow crosswalk in 100 Mile House?

A weekly web poll from the 100 Mile Free Press

RCMP arrest man without incident after careless use of a firearm

A 55 year old male was arrested without incident by 100 Mile House RCMP on August 17

Indigenous artist keeps her culture alive in new children’s book

‘For hundreds of years, it was the animals they used [in stories] because they were common things’

Police name second suspect, lay kidnapping and attempted murder charges in connection with Rudy Johnson Bridge incidents

Drynock is considered dangerous, do not approach him and call the local RCMP detachment immediately

Celebrity Pie-Eating Contest headlines 2019 South Cariboo Summer Festival

Gisela Janzen was the winner of the first annual pie-eating contest at the South Cariboo Rec. Centre

VIDEO: Canadian zoos’ captive breeding programs help preserve endangered species

Programs considered last-ditch effort to prevent local extinctions of turtles, butterflies and more

Vancouver man arrested after pregnant woman’s SUV stolen, then crashed

Police are recommending charges against a 22-year-old Vancouver man

Elections Canada to assess ‘partisan’ climate change rhetoric case by case

People’s Party of Canada Leader Maxime Bernier has said climate change is not an emergency nor caused by human

Unseasonable snow forces campers out of northeastern B.C. provincial park

Storm brought as much as 35 centimetres of snow to the Fort Nelson, Muncho Lake Park-Stone Mountain Park

B.C. log export rules killing us, northwest harvester says

NorthPac Forestry says Skeena Sawmills has plenty of timber

Environment groups warned saying climate change is real could be seen as partisan

Talk of climate change could be viewed as advocating against Maxime Bernier, the leader of the People’s Party of Canada

Search crews find 4-year-old boy who went missing near Mackenzie

George went missing early Saturday afternoon

Most Read